Because of the geographical issue related to HRM function, there are a number of observations where the overall sales of the company have to observe a massive decline. In the recent years, there has been a situation of unrest because of the political conditions. Asia pacific and Europe serves as one of the major markets for the company. The condition of social unrest in one part of the world can be coped up with a proper HRM management in another part. Having less amount of geographical expansion will lead to an economic imbalance in the company. This also leads to the limited check on the tax related policies in different nation.
An example of the same is that when a particular product has a higher tax in one region, the sales will get lower in the same. If the HRM function is globally expanded, they can try to find the solution by doing the market in another region. Also, because of the lack of global expansion and the connection, there is non-uniformity in the salaries of the employees. The salary in some area is huge while they are not suitable in other areas. The HRM Function has a challenge that how can the people in different regions be given equal salary so that they can be motivated. With the help of sharing of statistics, they will be able to ensure that each and every employee is satisfied with their job.
Diageo believes that the potential harm from alcohol is preventable and there is a dominant and dignified space for alcohol in the society. In order to prove its words they actively participate in educating people about the usage of alcohol and bringing it to use in a courteous manner. They always stay upfront to maintain high standards of responsibility in their own activities and promote these strongly in their industry (Min, 2010). They also indulge in practical campaigns that focus to tackle the misuse by altering peoples view towards alcohol.
Diageo invests an important part of its revenue to help reduce incidences of alcohol misuses. Their priorities are in four areas: drink-driving, server training, young adult behaviour and underage drinking.